I want to get away from my current Unit Trust ISA

money4ah

After reading many posts on the site over the past few weeks I feel I am still non the wiser with what to do with my current Unit Trust ISA.

However what I have learnt is that my current investment in a CIS UK Growth trust is far from the best place for my money.

We are not talking huge amounts - around 5k currently invested with a drip feed of £50 a month, but I could increase this to £100 if required.

I read posts on Best S+S ISA's and companies like H+L and their Vantage product etc and have checked Trustnet for comparisons.

But am I starting in the right place to be looking any guidance greatly appreciated.

Also does anyone know what charges I am likely to be paying on a CIS Unit Trust policy to assist in my comparisons?

Seemore_2

Regarding CIS charges, this is from their important information doc.

http://www.co-operativeinvestments.co.uk/cfscombi/pdf/invest/ISA_important_information.pdf

Charges for our products and services
[FONT=Helvetica Neue LT,Helvetica Neue LT][FONT=Helvetica Neue LT,Helvetica Neue LT]Where we are obliged to disclose full details of charges and the cost of advice, we will provide these to you. This information can also be provided on request. The charges for our own products include a wide range of general expenses and other overheads as well as any remuneration we pay to Co-operative Financial Advisers.[/FONT]
[/FONT]

Not exactly transparent, but might include an exit fee for transferring so worth checking with them.

As to deciding where to transfer, I think its really down to individual preferences and research. I have always found HL's fund research pages to be quite clear and concise.

dunstonh

Also does anyone know what charges I am likely to be paying on a CIS Unit Trust policy to assist in my comparisons?

Very expensive. About as high as you can get. 5% initial charge and 1.5% p.a on most of theirs.

Limited fund range, low skilled sales reps and expensive.

Rollinghome

money4ah wrote: »

After reading many posts on the site over the past few weeks I feel I am still non the wiser with what to do with my current Unit Trust ISA.

However what I have learnt is that my current investment in a CIS UK Growth trust is far from the best place for my money.

We are not talking huge amounts - around 5k currently invested with a drip feed of £50 a month, but I could increase this to £100 if required.

I read posts on Best S+S ISA's and companies like H+L and their Vantage product etc and have checked Trustnet for comparisons.

But am I starting in the right place to be looking any guidance greatly appreciated.

Also does anyone know what charges I am likely to be paying on a CIS Unit Trust policy to assist in my comparisons?

1.00% annual management for bond funds is about average and the charge for equity funds of 1.5% is probably just a whisker below average. Some of their funds do very well, for example the Sustainable Leaders fund with a TER of just 1.52% and managed by Zack Hocking. So has their UK Income with growth fund. Both have well out-performed their sectors over 5 years. Their US fund hasn't done well and the annual charge for their index tracker is daft - treble what it should be.

H-L offer most of their funds so you should be able to transfer an ISA to them without selling which would give you more choice and in most cases be able to switch without charges. H-L are good at answering emails or phone enquiries.

UnluckyAndy

I also have CIS unit trust ISAs and have lost a lot of money so I am confused why you say the CIS fund is good. I started paying £75 a month in 2005 and ended up paying in about £4000 by last year, which they now value at just over £2200. It's split equally between the UK growth and UK income with growth funds. I was very naive and didn't check the value as i was expecting a nice surprise!!!

Looking at their fund details they still make it look like they are worth investing in.

Why has it done so badly? Are CIS funds managed by the chuckle brothers?

There must be many other people who also were lured into a false sense of security by the S in ISA.

Andy.

dunstonh

Why has it done so badly?

Because you bought most of your units pre global recession and they are now valued at post recession prices. However, those units bought from around Oct 08 to march 10 would have done much better as the recovery started.

Regular contributions take much longer to show decent profits and are more prone to stockmarket crashes giving the appearance of a heavy hit. i.e. £75pm over 12 months is £900. If a 40% stockmarket crash comes then, you lose £360. However, after 5 years you have paid £4500. If a 40% stockmarket crash comes then, you lose £1800.

There must be many other people who also were lured into a false sense of security by the S in ISA.

The S stands for stocks and shares. Not security. The minute you mention stocks and shares, an inexperienced investor is going to think "risk", not "security". Sounds like you are investing above your risk profile and should have some lower risk investments in your S&S ISA. Or alternatively, you should learn a bit more about your investments and then decide what is best as you may decide you are happy with the risk once you know what risks you are taking.